NEW ISSUES BOOK-ENTRY ONLY Ratings: Fitch: AA Moody s: Aa2 S&P: AA-

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1 NEW ISSUES BOOK-ENTRY ONLY Ratings: Fitch: AA Moody s: Aa2 S&P: AA- In the opinion of Bond Counsel, under existing law, assuming continued compliance with certain provisions of the Internal Revenue Code of 1986, as amended, interest on the Bonds will not be included in the gross income of holders of the Bonds for federal income tax purposes, and interest on the Bonds will not constitute a preference item for the purposes of computation of the alternative minimum tax imposed on certain individuals and corporations, although such interest will be taken into account in determining adjusted current earnings when calculating corporate alternative minimum taxable income. In the opinion of Bond Counsel, interest on the Bonds and any profit made on the sale thereof are exempt from Massachusetts personal income taxes, and the Bonds are exempt from Massachusetts personal property taxes. See TAX MATTERS herein. University of Massachusetts Building Authority $298,795,000 Project Revenue Bonds Senior Series $191,825,000 Refunding Revenue Bonds Senior Series Dated: Date of Initial Delivery Due: As shown on the inside cover The Project Revenue Bonds, Senior Series (the Series Bonds ) and Refunding Revenue Bonds, Senior Series (the Series Bonds and together with the Series Bonds, the Bonds ) will be issued by the University of Massachusetts Building Authority (the Authority ) as fully registered bonds and will be registered in the name of Cede & Co., as nominee for The Depository Trust Company ( DTC ), New York, New York. Individual purchases of beneficial ownership of the Bonds will be made in book-entry form, in the denominations of $5,000 or any integral multiple thereof. No physical delivery of the Bonds will be made to purchasers. So long as Cede & Co. is the registered owner of the Bonds, principal and semiannual interest are payable to DTC by U.S. Bank National Association, Boston, Massachusetts, as Trustee. See BOOK-ENTRY ONLY SYSTEM herein. The Bonds, including the redemption terms, are more fully described herein under THE BONDS. The Bonds are special obligations of the Authority payable solely from funds provided under the Enabling Act (defined herein), the Project Trust Agreement (defined herein) and the Series Resolutions (defined herein), including payments made by the University of Massachusetts (the University ), all as more fully described under SECURITY AND SOURCES OF PAYMENT FOR THE BONDS herein. The Bonds shall not be deemed to constitute a general obligation of the authority or a debt or liability of the COMMONWEALTH OR ANY POLITICAL SUBDIVISION THEREOF. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COMMONWEALTH OR OF ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR THE INTEREST ON THE BONDS. THE ENABLING ACT OF THE AUTHORITY DOES NOT IN ANY WAY CREATE A SO-CALLED MORAL OBLIGATION OF THE COMMONWEALTH OR ANY POLITICAL SUBDIVISION THEREOF TO PAY DEBT SERVICE WITH RESPECT TO THE BONDS. THE AUTHORITY DOES NOT HAVE TAXING POWER. The Bonds are offered when, as and if issued by the Authority and received by the Underwriters, subject to the approval of legality by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., Boston, Massachusetts, Bond Counsel. Certain legal matters will be passed upon for the Authority and the University by its Disclosure Counsel, Nixon Peabody LLP, Boston, Massachusetts, and for the Underwriters by their counsel, McCarter & English, LLP, Boston, Massachusetts. It is expected that the Bonds in definitive form will be available for delivery through DTC in New York on or about March 25, Citigroup BofA Merrill Lynch Drexel Hamilton, LLC Janney Montgomery Scott LLC Morgan Stanley Roosevelt & Cross, Inc. February 25, 2015 Raymond James Barclays Fidelity Capital Markets Jefferies Piper Jaffray & Co. Cabrera Capital Markets, LLC J.P. Morgan Loop Capital Markets Ramirez & Co., Inc. Wells Fargo Securities

2 AMOUNTS, MATURITIES, INTEREST RATES AND PRICES OR YIELDS $298,795,000 University of Massachusetts Building Authority Project Revenue Bonds, Senior Series $134,605,000 Serial Bonds Due November 1 Amount Interest Rate Yield CUSIP 2025 $ 8,420, % 2.45 % PZ ,850, * QA ,310, * QB ,785, * QC ,290, * QD ,815, * QE ,370, * QF ,955, * QG ,570, * QH ,205, * QJ ,950, * QR ,185, * QK ,550, * QP ,985, * QL ,365, * QQ8 $64,985, % Term Bonds due November 1, 2040 to yield 3.17%* CUSIP : QM7 $99,205, % Term Bonds due November 1, 2045 to yield 3.67%* CUSIP : QN5 * Yield to the first optional redemption date of November 1, The CUSIP (Committee on Uniform Securities Identification Procedures) numbers on the inside cover of this Official Statement have been assigned by an organization not affiliated with the Authority or the Trustee, and such parties are not responsible for the selection or use of the CUSIP numbers. The CUSIP numbers are included solely for the convenience of Bondholders and no representation is made as to the correctness of the CUSIP numbers printed on the inside cover hereof. CUSIP numbers assigned to securities may be changed during the term of such securities based on a number of factors including but not limited to the refunding or defeasance of such issue or the use of secondary market financial products. Neither the Authority nor the Trustee has agreed to, nor is there any duty or obligation to, update this Official Statement to reflect any change or correction in the CUSIP numbers printed on the inside cover hereof. (i)

3 $191,825,000 University of Massachusetts Building Authority Refunding Revenue Bonds, Senior Series $191,825,000 Serial Bonds Due November 1 Amount Interest Rate Yield CUSIP 2017 $ 2,825, % 0.75% RH ,925, RJ ,270, RK ,070, SG ,815, RL ,155, SD ,360, SH ,470, RM ,605, SE ,235, SJ ,440, RN ,945, SF ,760, SK ,590, RP ,035, RQ ,365, RR ,780, * RS ,205, * RT ,700, * RU ,380, * RV ,180, * RW ,435, * RX ,710, * RY ,000, * RZ ,270, * SA ,520, * SB ,780, * SC3 * Yield to the first optional redemption date of November 1, The CUSIP (Committee on Uniform Securities Identification Procedures) numbers on the inside cover of this Official Statement have been assigned by an organization not affiliated with the Authority or the Trustee, and such parties are not responsible for the selection or use of the CUSIP numbers. The CUSIP numbers are included solely for the convenience of Bondholders and no representation is made as to the correctness of the CUSIP numbers printed on the inside cover hereof. CUSIP numbers assigned to securities may be changed during the term of such securities based on a number of factors including but not limited to the refunding or defeasance of such issue or the use of secondary market financial products. Neither the Authority nor the Trustee has agreed to, nor is there any duty or obligation to, update this Official Statement to reflect any change or correction in the CUSIP numbers printed on the inside cover hereof. (ii)

4 UNIVERSITY OF MASSACHUSETTS BUILDING AUTHORITY 225 Franklin Street, 12 th Floor Boston, Massachusetts Telephone: (617) Authority Members Philip W. Johnston, Chair Paul J. Carney, Vice Chair Karen G. Courtney, Secretary-Treasurer Francis X. Callahan, Jr. Richard P. Campbell Edward W. Collins, Jr. William F. Kennedy Paul Lonergan Jeffrey B. Mullan Christopher Philbin Henry M. Thomas, III Executive/Senior Staff Patricia Filippone, Executive Director, Chief Financial Officer and Assistant Secretary-Treasurer Joanna Aalto, Treasurer and Director of Construction Audits Joseph Naughton, Director of Capital Projects Mary Kaitlin McSally, General Counsel Trustee U.S. Bank National Association Boston, Massachusetts Financial Advisor First Southwest Company Boston, Massachusetts Bond Counsel Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. Boston, Massachusetts Independent Accountants for the Authority and the University Grant Thornton LLP Boston, Massachusetts Disclosure Counsel Nixon Peabody LLP Boston, Massachusetts (iii)

5 No dealer, broker, salesman or other person has been authorized by the University of Massachusetts Building Authority (the Authority ), The Commonwealth of Massachusetts (the Commonwealth ), the University of Massachusetts (the University ) or the Underwriters to give any information or to make any representation with respect to the Bonds other than as contained in this Official Statement and, if given or made, such other information or representation must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. Certain information contained herein has been obtained from the Authority, the University, The Depository Trust Company and other sources which are believed to be reliable, but is not guaranteed as to accuracy or completeness, and is not to be construed as a representation of the Authority, the Commonwealth, the University or the Underwriters. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the parties referred to above since the date hereof. U.S. Bank National Association by acceptance of its duties as Trustee under the Project Trust Agreement described herein has not reviewed this Official Statement and makes no representations as to the information contained herein, including but not limited to any representations as to the use of the proceeds of the Bonds or related activities. All quotations from and summaries and explanations of provisions of laws, the Project Trust Agreement, the Contract, the Bonds, the Series Resolutions and other documents herein do not purport to be complete; reference is made to said laws, the Project Trust Agreement, the Bonds and other documents for full and complete statements of their provisions. Copies of the above are available for inspection at the principal office of the Trustee. Information included in this Official Statement includes forward-looking statements about the future that are necessarily subject to various risks and uncertainties ( Forward-Looking Statements ). These Forward-Looking Statements are (i) based on the beliefs and assumptions of management of the Authority and the University and on information currently available to such management and (ii) generally identifiable by words such as estimates, expects, anticipates, plans, believes and other similar expressions. Events that could cause future results to differ materially from those expressed in or implied by Forward-Looking Statements or historical experience include the impact or outcome of many factors that are described throughout this Official Statement. Although the ultimate impact of such factors is uncertain, they may cause future performance to differ materially from results or outcomes that are currently sought or expected by the Authority and the University. References to web site addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader s convenience. Unless specified otherwise, such web sites and the information or links contained therein are not incorporated into, and are not part of, this final official statement for purposes of, and as that term is defined in, SEC rule 15c2-12. The financial advisor to the Authority has provided the following sentence for inclusion in this Official Statement. The financial advisor has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to the Authority and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the financial advisor does not guarantee the accuracy or completeness of such information. THE UNDERWRITERS HAVE PROVIDED THE FOLLOWING SENTENCE FOR INCLUSION IN THIS OFFICIAL STATEMENT: THE UNDERWRITERS HAVE REVIEWED THE INFORMATION IN THIS OFFICIAL STATEMENT IN ACCORDANCE WITH, AND AS PART OF, THEIR RESPECTIVE RESPONSIBILITIES TO INVESTORS UNDER THE FEDERAL SECURITIES LAWS AS APPLIED TO THE FACTS AND CIRCUMSTANCES OF THIS TRANSACTION, BUT THE UNDERWRITERS DO NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE SECURITIES OFFERED HEREBY AT A LEVEL ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. (iv)

6 TABLE OF CONTENTS INTRODUCTORY STATEMENT... 1 General... 1 Purpose and Content of Official Statement... 2 THE AUTHORITY... 2 General... 2 Members, Officers and Staff... 3 THE BONDS... 5 General... 5 Redemption Provisions... 5 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS... 6 General... 6 Contract... 7 Pledge of Revenues Under the Project Trust Agreement... 8 Rate Covenant... 8 Additional Indebtedness... 8 Annual Debt Service Requirements... 9 THE PROJECTS PLAN OF REFUNDING APPLICATION OF PROCEEDS OF THE BONDS LITIGATION LEGALITY FOR INVESTMENT TAX MATTERS RATINGS LEGAL MATTERS DISCLOSURE CERTIFICATES UNDERWRITING VERIFICATION OF MATHEMATICAL COMPUTATIONS CONTINUING DISCLOSURE FINANCIAL ADVISOR FINANCIAL STATEMENTS OF THE AUTHORITY FINANCIAL STATEMENTS OF THE UNIVERSITY MISCELLANEOUS Appendix A. Letter from the University... A-1 Appendix B. Financial Statements of the Authority... B-1 Appendix C. Financial Report of the University, including Financial Statements... C-1 Appendix D. Summary of Legal Documents... D-1 Appendix D-1. Summary of Certain Provisions of the Project Trust Agreement... D-1-1 Appendix D-2. Summary of Certain Provisions of the Contract... D-2-1 Appendix E. Proposed Form of Opinion of Bond Counsel... E-1 Appendix F. Summary of Continuing Disclosure Undertakings... F-1 Appendix G. Book-Entry Only System... G-1 Appendix H. Refunded Bonds... H-1 (iv)

7 OFFICIAL STATEMENT $298,795,000 $191,825,000 University of Massachusetts Building Authority University of Massachusetts Building Authority Project Revenue Bonds Senior Series Refunding Revenue Bonds Senior Series General INTRODUCTORY STATEMENT The purpose of this Official Statement, which includes the cover page and the appendices hereto, is to furnish information in connection with the offering by the University of Massachusetts Building Authority (the Authority ) of its $298,795,000 Project Revenue Bonds, Senior Series (the Series Bonds ) and its $191,825,000 Refunding Revenue Bonds, Senior Series (the Series Bonds and together with the Series Bonds, the Bonds ). Unless otherwise defined herein, capitalized terms used herein shall have the meanings set forth in Appendix D Summary of Legal Documents. The Bonds are issued pursuant to Chapter 773 of the Acts of 1960 of the Commonwealth of Massachusetts, as amended (the Enabling Act ) and the Trust Agreement dated as of November 1, 2000 (the Project Trust Agreement ), between the Authority and U.S. Bank National Association, Boston, Massachusetts, as successor trustee (the Trustee ). The Series Bonds are issued pursuant to the Series Resolution Authorizing the Issuance of Project Revenue Bonds, Senior Series (the Series Resolution ), adopted by the Authority on September 16, The Series Bonds are issued pursuant to the Series Resolution Authorizing the Issuance of Refunding Revenue Bonds, Senior Series (the Series Resolution, and together with the Series Resolution, the Series Resolutions ), adopted by the Authority on September 16, The Authority was created by the Enabling Act as a body politic and corporate and a public instrumentality of the Commonwealth of Massachusetts (the Commonwealth ) for the general purpose of aiding and contributing to the performance of the educational and other purposes of the University of Massachusetts (the University ) by providing dormitories, dining commons and other buildings and structures for the use of the University, its students, staff and their dependents and for lease to certain other entities related to the University, all in accordance with the Enabling Act. See THE AUTHORITY. The Series Bonds are being issued to finance and refinance projects set forth in the University s capital plan. See THE PROJECTS. The proceeds of the Series Bonds will be used to finance the costs of such projects, to pay down approximately $50 million of principal and interest on commercial paper notes issued by the Authority, and to pay costs of issuing the Series Bonds. The Series Bonds are being issued to refund the bonds listed on Appendix H (the Refunded Bonds ) and to pay costs of issuance of the Series Bonds. The Enabling Act prohibits the Authority from initiating any project except upon request made by the University and upon written approval from the Secretary of the Executive Office for Administration and Finance of the Commonwealth. In connection with the Bonds, such request has been made and all such approvals shall be obtained prior to the issuance of the Bonds. The Enabling Act provides that any refunding of Authority indebtedness shall be approved by the Trustees of the University, which approval has been obtained with respect to the issuance of the Series Bonds. The Bonds will be special obligations of the Authority payable solely from funds provided under the Enabling Act, the Project Trust Agreement and the Series Resolutions, including payments made by the University under the Amended and Restated Master Contract for Financial Assistance, Management and Services dated as of February 25, 2014 (the Contract ) among the Commonwealth, acting by and through the University, the University and the Authority.

8 Under the Contract, the University is obligated to pay debt service on the Bonds and other costs of the Authority related thereto with respect to the Projects from all available funds of the University. See SECURITY AND SOURCES OF PAYMENT FOR THE BONDS. The obligations of the University in connection with the Bonds do not constitute a general obligation of the University or a debt or obligation of the Commonwealth, and (a) the Commonwealth shall not be obligated to pay the Bonds, and (b) neither the faith and credit nor the taxing power of the Commonwealth or of any political subdivision thereof is pledged to the payment of the Bonds. The Enabling Act does not in any way create a socalled moral obligation of the Commonwealth or of any political subdivision thereof to pay debt service with respect to the Bonds. The Authority does not have taxing power. Purpose and Content of Official Statement This Official Statement describes the terms and use of proceeds of, and security for, the Bonds. This introduction is subject in all respects to the additional information contained in this Official Statement, including Appendices A through H hereto. All descriptions of documents contained herein are only summaries and are qualified in their entirety by reference to each such document. Information about the University is set forth in Appendix A. Financial Statements of the Authority and of the University, respectively, as of and for the fiscal years ended June 30, 2014 and 2013 are set forth in Appendices B and C. A summary of certain provisions of the Project Trust Agreement and the Contract is included as Appendices D-1 and D-2, respectively. The proposed form of opinions of Bond Counsel is included in Appendix E. Appendix F includes a summary of the Continuing Disclosure Agreement with respect to the Authority and the University. Appendix G includes information about The Depository Trust Company and the book-entry only system. Appendix H includes information about the Refunded Bonds. The summaries of the agreements and other documents herein do not purport to be comprehensive or definitive and all references to any contract, agreement and other document described herein are qualified in their entirety by reference to each such contract, agreement and other document. Definitive copies of all contracts, agreements and other documents described in the Official Statement are available for inspection prior to the date of issuance of the Bonds at the offices of the Authority, located at 225 Franklin Street, 12 th Floor, Boston, Massachusetts 02110, and subsequent to the date of issuance of the Bonds, at the principal corporate trust office of the Trustee. General THE AUTHORITY The Authority was created in 1960 by the Enabling Act as a body politic and corporate and a public instrumentality placed in the Commonwealth s Department of Education, but not subject to the supervision or regulation of that Department or of any other department, commission, board, bureau or agency of the Commonwealth except as specifically provided in the Enabling Act and described herein. In 1995, the Authority was consolidated with and assumed the obligations of the Southeastern Massachusetts Building Authority and the University of Lowell Building Authority, following the University of Lowell and Southeastern Massachusetts University, respectively, being made the University s Lowell Campus and Dartmouth Campus in The Authority was created for the general purpose of aiding and contributing to the performance of the educational and other purposes of the University by providing dormitories, dining commons and other buildings and structures primarily for (i) the use of the University, its students, staff and their dependents, (ii) lease to or use by an organization or association of students or others, the activities of which are a part of the activities at the University and subject to regulation by the University, (iii) a research foundation or other research organization the operation of which is approved by the University or (iv) any other entity the activities of which are approved by the University as furthering the purposes of the University. The Enabling Act prohibits the Authority from refunding outstanding bonds except upon approval of the University. 2

9 The Authority is empowered, among other things, to acquire, construct, remove, demolish, add to, alter, enlarge, reconstruct, remodel and do other work upon any building or structure and to provide and install furnishings, furniture, machinery, equipment, approaches, driveways, walkways, parking areas, planting, landscaping and other facilities therein. The Enabling Act authorizes the Authority, among other things, to acquire property from the Commonwealth or others (but the Authority has no eminent domain power), to rent or lease as lessor or lessee any portion of a project, to operate projects, to employ experts and other persons, to enter into contracts, to borrow money to finance and refinance projects it undertakes and to issue and sell its revenue bonds and notes therefor payable solely from its revenues. The Authority s outstanding debt has primarily been issued under the Project Trust Agreement. This includes bonds that refunded debt previously issued by the Authority, the University of Lowell Building Authority and the Southeastern Massachusetts University Building Authority. The Authority also has issued bonds under the Trust Agreement dated as of December 1, 2000 (the Facilities Trust Agreement ), between the Authority and the Trustee. Such bonds are designated Facilities Revenue Bonds and are secured by amounts pledged therefor under the Facilities Trust Agreement and under contracts with the University executed in connection with the issuance of such bonds. Facilities Revenue Bonds, unlike bonds issued under the Project Trust Agreement, are not secured by all available funds of the University. For information about outstanding indebtedness of the Authority, including the Authority s authorized $200 million commercial paper program, see Appendix A under the heading INDEBTEDNESS OF THE UNIVERSITY Bonds Issued by the Authority. See Appendix B for a copy of the Authority s audited financial statements as of and for the years ended June 30, 2014 and Under the Enabling Act, the Authority may have up to $200 million principal amount of notes and bonds issued by the Authority that are outstanding and guaranteed by the Commonwealth. As of January 15, 2015, $122,490,000 principal amount of Commonwealth guaranteed bonds were outstanding, including all outstanding bonds issued under the Facilities Trust Agreement ($24,270,000 par amount) and $98,220,000 of bonds issued under the Project Trust Agreement. The Bonds are not guaranteed by the Commonwealth. The Enabling Act requires approval by the Treasurer and Receiver General of the Commonwealth and the Secretary of the Executive Office for Administration and Finance of the Commonwealth, or by their designees, of the sale and terms of bonds or notes sold by the Authority, which approval the Authority will obtain prior to the sale of the Bonds. Members, Officers and Staff The Authority consists of eleven members appointed by the Governor of the Commonwealth, five of whom shall be appointive members of the Board of Trustees of the University and may, but need not, be graduates of the University, and two others who shall be graduates of the University. Members from the Board of Trustees of the University serve while they are Trustees of the University; each other member serves for a term expiring on June 30 in the sixth calendar year after the calendar year in which his or her term began (unless appointed to fill a vacancy in which case such member shall serve for the unexpired term). Each member continues in office until his or her successor is appointed and qualified. The Authority annually elects a chairman and vice-chairman from its members and also elects a secretary-treasurer and may elect an assistant secretary-treasurer, neither of whom needs to be a member of the Authority. The present members and officers of the Authority and the dates of expiration of their respective terms are as follows: 3

10 Member s Name, Position, Residence and Profession Term Expires Philip W. Johnston, * Chair, Marshfield September 13, 2017 President, Philip W. Johnston Associates Paul J. Carney, Vice Chair, Montecito, California June 30, 2014 ** Karen G. Courtney, Secretary-Treasurer, Winchester June 30, 2017 President, K Courtney & Associates, Inc. Francis X. Callahan, Jr., Member, Arlington June 30, 2015 President, Massachusetts Building Trades Council, AFL-CIO Richard P. Campbell, * Member, Cohasset September 1, 2016 Attorney, Campbell Campbell Edwards & Conroy, P.C. Edward W. Collins, Jr., * Member, Springfield September 13, 2017 International Representative, International Brotherhood of Electrical Workers William F. Kennedy, Member, Quincy June 30, 2016 Attorney, Nutter McClennen & Fish, LLP Paul Lonergan, Member, Cambridge June 30, 2019 President, Congress Wealth Management Jeffrey B. Mullan, * Member, Milton September 1, 2016 Attorney, Foley Hoag LLP Christopher Philbin, Member, Berlin June 30, 2019 Vice President, UMass Memorial Health Care Inc. Henry M. Thomas, III,* Member, Springfield September 13, 2017 President and Chief Executive Officer, Urban League of Springfield, Inc. * University Trustee member of Authority Board. Pursuant to the Enabling Act, the members who are appointive members of the University Trustees shall continue in office as members of the Authority so long as they continue in office as University Trustees. The date indicated is the expiration date of such member s term as a University Trustee. ** Pursuant to the Enabling Act, members with expired terms continue to serve until reappointed or a successor is appointed. Patricia Filippone is the Executive Director, Chief Financial Officer and Assistant Secretary-Treasurer of the Authority. Prior to joining the Authority in June 2012, Ms. Filippone served in various positions at The Broad Institute since 2008, including Chief Financial Officer and Assistant Treasurer, Senior Financial Officer and Controller. Previously, she was Director of Allston Finance at Harvard University. Prior to that, Ms. Filippone was at the Massachusetts Water Resources Authority for 12 years in various positions, including as Director of Finance and Chief Financial Officer, Treasurer and Controller. She began her career at Coopers & Lybrand and has been a Certified Public Accountant since She received a B.S. from Babson College. Joanna Aalto is Treasurer and Director of Construction Audits of the Authority. Prior to joining the Authority in June 2013, Ms. Aalto was the Controller/Director of Audits of the Massachusetts School Building Authority since January Prior to that, Joanna spent seven years at PriceWaterhouseCoopers LLP in the Audit and Business Assurance group and two years as an analyst at PaineWebber Inc. Joanna received her Master of Management from the Kellogg School of Management and a Bachelor of Arts from Harvard University and is a Certified Public Accountant. 4

11 Joseph Naughton is the Director of Capital Projects of the Authority. Previously, Mr. Naughton worked for the University s President s Office since 2006 in various positions, including as Director of Budget and Planning and Assistant Budget Director and Manager of Capital Planning. Prior to that, he was the Bond Fund Manager of the Capital Expenditure and Program Office for the Commonwealth s Department of Transportation. Mr. Naughton received a B.S. in Accounting from the Carroll School of Management at Boston College. Mary Kaitlin McSally is the General Counsel of the Authority. Prior to joining the Authority in April 2012, Ms. McSally worked at the Commonwealth s Division of Capital Asset Management and Maintenance as Deputy General Counsel since Previously, after clerking for the Supreme Court of Rhode Island, she was in private practice and in-house counsel in the Washington, D.C. area from 1993 to 2001 and then in private practice in Massachusetts from 2001 to She received her J.D. from Suffolk University and her B.S. from Boston College. The Authority maintains offices at 225 Franklin Street, 12 th Floor, Boston, Massachusetts The Authority s telephone number is (617) Its website can be found at General THE BONDS The Bonds will be issued as fully registered bonds in the aggregate principal amounts as set forth on the inside cover page hereof, will be dated the date of delivery and will bear interest from that date to their respective maturities as set forth on the inside cover page hereof, subject to redemption as described below. Ownership interests in the Bonds will be available in denominations of $5,000 and integral multiples thereof. So long as Cede & Co. is the registered owner of Bonds, all payments of principal and interest on the Series Bonds are payable by wire transfer by the Trustee to Cede & Co., as nominee for The Depository Trust Company ( DTC ), New York, New York, which will, in turn, remit such amounts to the DTC Participants for subsequent disposition to Beneficial Owners. See Appendix G Book-Entry Only System herein. The Series Bonds will be issued in the aggregate principal amount of $298,795,000. The Series Bonds will be dated the date of initial delivery thereof, will mature (unless redeemed prior to maturity) on November 1 of each of the years and will bear interest from their date at the rates per annum, all as set forth on the inside cover page of this Official Statement. Interest on the Series Bonds will be payable on May 1, 2015 and on each November 1 and May 1 thereafter or, if any such day is not a Business Day, the next Business Day. The Series Bonds are subject to optional and mandatory sinking fund redemption as described below. The Series Bonds will be issued in the aggregate principal amount of $191,825,000. The Series Bonds will be dated the date of initial delivery thereof, will mature (unless redeemed prior to maturity) on November 1 of each of the years and will bear interest from their date at the rates per annum, all as set forth on the inside cover page of this Official Statement. Interest on the Series Bonds will be payable on May 1, 2015 and on each November 1 and May 1 thereafter or, if any such day is not a Business Day, the next Business Day. The Series Bonds are subject to optional and mandatory sinking fund redemption as described below. Redemption Provisions Redemption by Sinking Fund Installments. The Series Bonds stated to mature on November 1, 2040 and November 1, 2045 shall be redeemed as provided in the Series Resolution by mandatory Sinking Fund Installments on November 1 at their principal amounts without premium, plus accrued interest to the redemption date as follows: 5

12 2040 Term Bonds Year Amount 2037 $15,050, ,820, ,630, ,485, Term Bonds Year Amount 2041 $18,290, ,035, ,805, ,620, ,455,000 Optional Redemption. The Bonds maturing on or after November 1, 2026 are subject to optional redemption prior to their stated maturity date on or after November 1, 2025 at the option of the Authority, in whole or in part, at any time, at a Redemption Price equal to the principal amount of the Bonds or portion thereof to be redeemed, without premium, plus interest accrued thereon to the date fixed for redemption. Any optional redemption may be stated to be conditional, and shall be conditioned upon the Trustee s receipt of funds sufficient to pay the Redemption Price of the Bonds to be redeemed on or prior to the Redemption Date. Notice of Redemption. The Trustee is required to give notice of redemption of any Bonds, specifying the date of redemption, the portions of the principal amounts thereof to be redeemed and the redemption price, by mail, not more than sixty (60) days nor less than thirty (30) days prior to the redemption date, to the registered owners of any Bonds, or portions thereof, to be redeemed. Notice of redemption will be mailed to DTC or its nominee, as registered owner of the Bonds. The Trustee will not be responsible for mailing notices of redemption to anyone other than DTC or its nominee. The Authority is not responsible for mailing any notice of redemption. Selection of Bonds To Be Redeemed Upon Partial Redemption. If less than all of the Bonds or a series are to be redeemed, the particular maturities, bearing interest at a particular rates, or Sinking Fund Installments of the series of Bonds to be redeemed at the option of the Authority will be determined by the Authority in its sole discretion. Effect of Redemption. Notice of redemption having been given in the manner provided above, and money sufficient for the redemption being held by the Trustee for such purpose, the Bonds so called for redemption shall become due and payable on the redemption date, and interest thereon shall cease to accrue and the owners of the Bonds so called for redemption shall thereafter no longer have any security or benefit under the Project Trust Agreement except to receive payment of the redemption price for such Bonds. General SECURITY AND SOURCES OF PAYMENT FOR THE BONDS The Bonds are special obligations of the Authority payable solely from the funds provided under the provisions of the Enabling Act, the Project Trust Agreement and the Series Resolutions, including payments received from the University under the Contract. Pursuant to the Contract, the University is obligated to make payments to the Authority to pay debt service on the Bonds and other costs related to the Bonds and the Projects. Such payments are secured by a pledge of the University of all available funds of the University, including trust funds and other funds administered by the University as gifts, grants or trusts, or as provided in the University enabling act. Further, under the Contract, the 6

13 University is obligated to cause to be available in the Unrestricted Net Assets at all times amounts sufficient to pay such costs. However, the obligations of the University in connection with the Bonds do not constitute a general obligation of the University or a debt or obligation of the Commonwealth, and (a) the Commonwealth shall not be obligated to pay the Bonds, and (b) neither the faith and credit nor the taxing power of the Commonwealth or of any political subdivision thereof is pledged to the payment of the Bonds. The Enabling Act does not in any way create a so-called moral obligation of the Commonwealth or of any political subdivision thereof to pay debt service with respect to the Bonds. The Authority does not have taxing power. Contract The following is a brief overview of the terms of the Contract. For more details, see Appendix D-2 Summary of Certain Provisions of the Contract. In connection with the issuance of the Bonds, the Authority and the University will certify that the Bonds are subject to the Contract. Under the Contract, the University has agreed to remit to the Trustee amounts sufficient to pay debt service on the Authority bonds and notes that are secured by the Contract, including the Bonds, and to maintain, repair and operate the projects financed or refinanced by such bonds or notes. The Contract also sets forth the Authority s and the University s respective obligations with respect to the projects that are the subject of the Contract, including, as applicable, acquisition, planning, construction, completion, operation, management, maintenance and repair thereof. Under the Contract, the Authority shall annually certify by March 1 to the University for the twelve-month period commencing the next succeeding November 1, the amount estimated to cover the costs of debt service and other related expenses, including amounts to be funded under the Project Trust Agreement or Facilities Trust Agreement, as applicable, and costs related to the projects that are the subject of the Contract, in each case detailed by component of the financed projects. Such certificate, which may be revised from time to time as necessary, shall include the date on which such amounts are due and the source of such payments. For any project operated by the Authority for which the Authority sets rates and charges for such project, such certificate shall detail the fees, rents, rates and other charges proposed for the use of such projects, which shall be fixed so as to be sufficient, in the aggregate, together with other available moneys, to cover all of the costs allocable to such projects. Under the Contract, the University pledges to the making of payments required thereunder from all available funds of the University, including trust funds and other funds administered by the University as gifts, grants or trusts. In addition, the University shall cause to be available in the Unrestricted Net Assets at all times amounts sufficient to pay such portion of the amounts certified by the Authority required to be paid therefrom and to provide for any other payments required under the MDFA Financing Agreements (as defined in Appendix D and referred to below under Additional Indebtedness ). This pledge of the general obligation of the University does not apply to certain projects, referred to in the Contract as Specific Revenue Projects and bonds or notes related thereto. See Appendix D-2. By April 1 of each year, the University Treasurer shall certify in writing to the Authority whether or not there are sufficient funds in the Unrestricted Net Assets to pay the amounts so required to be paid therefrom and, if so, that such funds will be held in trust in the Unrestricted Net Assets for the equal and ratable benefit of the Authority and each other person or entity for whose benefit amounts will be applied to the payment of amounts required to be paid therefrom and will not be expended for any other purpose. Such funds will be so held and not expended for any other purpose; provided, however, that if any portion of the amount to be paid to the Authority is paid from gifts or trust funds or funds generated by the Authority from projects, then after any such payment an amount equal to such portion so paid need no longer be held in the Unrestricted Net Assets. If such certification states that sufficient funds are not available in the Unrestricted Net Assets to pay such amounts, such certification shall state the amount of funds so available and ratably portion of such funds and hold 7

14 them in trust for the benefit of the Authority to be applied pro rata. Notwithstanding any shortfall, the University will continue to be obligated to make payments in full. Further, under the Contract, the Authority is authorized to adopt or revise fee and other charges for the use of its projects and to bill and collect from students in the University the amounts necessary to cover any such shortfall. To date, there has never been such a shortfall. Pledge of Revenues Under the Project Trust Agreement The following is a brief overview of certain terms of the Project Trust Agreement. For more details, see Appendix D-1 Summary of Certain Provisions of the Project Trust Agreement. The Project Trust Agreement assigns, pledges and grants to the Trustee a security interest in all rights of the Authority under the Contract to receive amounts payable to the Authority thereunder and pledged under the Project Trust Agreement. The Project Trust Agreement pledges to the Trustee for the benefit of the holders of the Bonds and all other bonds issued under the Project Trust Agreement (i) all moneys paid or payable for deposit in or on deposit in any Fund, Account or subaccount created under the Project Trust Agreement, all investments received or receivable for deposit in or on deposit in any Fund, Account or subaccount created under the Project Trust Agreement and all interest or other income on such investments paid or payable for deposit in or on deposit in any Fund, Account or subaccount created thereunder and all rights of the Authority to receive such moneys, investments and interest or other income (except for the Rebate Fund), subject to application of such moneys, investments and other income as provided in the Project Trust Agreement and (ii) subject to the Project Trust Agreement, (a) the Revenues from each project financed or refinanced under the Project Trust Agreement and (b) the Revenues, including Secondary Revenues payable to the Authority from Other Projects, except as set forth in the Project Trust Agreement. Pursuant to the Enabling Act, Revenues pledged by the Project Trust Agreement and received by the Authority in connection with the projects financed or refinanced by any Series of bonds issued under the Project Trust Agreement are pledged to the payment of the principal of and interest on all Outstanding bonds under the Project Trust Agreement as they become due, the redemption price or the purchase price of Outstanding bonds redeemed or purchased as provided in the Project Trust Agreement and other costs payable with respect to Outstanding bonds under the Project Trust Agreement. As of January 15, 2015, there were $2,405,065,000 principal amount of bonds outstanding under the Project Trust Agreement. Rate Covenant Under the Project Trust Agreement, the Authority covenants that it will fix, revise, adjust and collect fees, rents, rates and other charges for the use of each Project and any other projects or property the Revenues from which are pledged under such Project Trust Agreement to provide Revenues sufficient in the aggregate to pay all expenses of the Authority allocable to projects financed or refinanced under the Project Trust Agreement and debt service on all bonds issued and Outstanding under the Project Trust Agreement, all as set forth in Appendix D-1 Summary of Legal Documents. Additional Indebtedness The Project Trust Agreement provides that the Authority may issue additional bonds on a parity with or subordinate to the Bonds issued under the Project Trust Agreement. See Appendix D-1 Summary of Certain Provisions of the Project Trust Agreement. For a description of the Authority s indebtedness, see Appendix B. Pursuant to certain financing agreements between the University, acting in the name and on behalf of the Commonwealth, and the Massachusetts Health and Educational Facilities Authority and its successor, the Massachusetts Development Finance Agency, in connection with the issuance of other debt for the University, the University agreed not to request or permit the Authority to issue additional indebtedness on behalf of the University except (i) indebtedness that is payable from all available funds of the University or (ii) indebtedness secured by pledged revenues derived from the project or projects being financed, new or increased student fees, existing 8

15 pledged revenues or any combination of the foregoing, provided, that the maximum annual debt service on all such revenue-backed indebtedness then outstanding, including the proposed additional indebtedness, does not exceed 10% of the amount shown on the then most recent audited financial statements of the University as total available revenues. In addition, no such indebtedness shall be subject to acceleration. For a description of the University s indebtedness, see Appendix A. Annual Debt Service Requirements The following table sets forth for each fiscal year ending June 30 the debt service on Outstanding bonds under the Project Trust Agreement and the Facilities Trust Agreement, following the issuance of the Bonds, including principal (whether at maturity or by mandatory sinking fund redemption), interest and total debt service. Fiscal Year Ended June 30 Debt Service on Outstanding Authority Bonds (1) Principal of Series Bonds Interest on Series Bonds Principal of Series Bonds Interest on Series Bonds Total Debt Service Requirements for the Bonds Total Debt Service on Authority Bonds (1)(2) 2015 $184,586,585 $ - $1,367,905 $ - $909,235 $2,277,140 $186,863, ,951,706-13,679,050-9,092,350 22,771, ,723, ,998,381-13,679,050-9,092,350 22,771, ,769, ,172,843-13,679,050 2,825,000 9,049,975 25,554, ,726, ,000,141-13,679,050 2,925,000 8,949,100 25,553, ,553, ,683,225-13,679,050 6,270,000 8,733,850 28,682, ,366, ,169,868-13,679,050 22,040,000 8,055,025 43,774, ,943, ,113,122-13,679,050 24,435,000 6,949,800 45,063, ,176, ,291,066-13,679,050 25,620,000 5,765,275 45,064, ,355, ,125,381-13,679,050 17,350,000 4,743,100 35,772, ,897, ,391,202-13,679,050 10,035,000 4,071,425 27,785, ,176, ,408,455 8,420,000 13,468,550 8,365,000 3,611,425 33,864, ,273, ,060,799 8,850,000 13,036,800 8,780,000 3,182,800 33,849, ,910, ,750,548 9,310,000 12,582,800 9,205,000 2,733,175 33,830, ,581, ,894,980 9,785,000 12,105,425 4,700,000 2,385,550 28,975, ,870, ,041,404 10,290,000 11,603,550 7,380,000 2,083,550 31,357, ,398, ,823,574 10,815,000 11,075,925 5,180,000 1,769,550 28,840, ,664, ,247,595 11,370,000 10,521,300 5,435,000 1,504,175 28,830, ,078, ,502,499 11,955,000 9,938,175 5,710,000 1,225,550 28,828, ,331, ,506,833 12,570,000 9,325,050 6,000, ,800 28,827, ,334, ,234,256 13,155,000 8,731,675 6,270, ,400 28,814, ,048, ,617,920 13,735,000 8,156,925 6,520, ,600 28,813, ,431, ,689,729 14,350,000 7,539,375 6,780, ,600 28,804, ,494, ,724,911 15,050,000 6,841, ,891, ,616, ,102,300 15,820,000 6,069, ,889, ,991, ,872,270 16,630,000 5,258, ,888, ,760, ,394,993 17,485,000 4,405, ,890, ,285, ,521,508 18,290,000 3,602, ,892,400 84,413, ,524,523 19,035,000 2,855, ,890,900 84,415, ,506,176 19,805,000 2,079, ,884,100 81,390, ,357,141 20,620,000 1,270, ,890,600 56,247, ,455, , ,884,100 21,884,100 (1) Includes interest on the Authority s Project Revenue Bonds, Senior Series , Facilities Revenue Bonds, Senior Series 2008-A Bonds, Project Revenue Bonds, Senior Series Bonds and Project Revenue Bonds, Senior Series , each issued as variable rate debt, Outstanding as of January 15, 2015 in the principal amounts of $194,530,000, $21,930,000, $129,690,000 and $98,220,000, respectively, and amortizing in accordance with the terms thereof, assumed at the rates of 3.388%, with respect to the Bonds; 3.378%, with respect to the 2008-A Bonds; and 3.482%, with respect to the Bonds and Bonds, respectively. These assumed rates are based on the fixed rates being paid to the counterparties under interest rate swap agreements associated with such bonds. See Note 5 to the Financial Statements of the Authority as of and for the years ended June 30, 2014 and 2013 attached hereto as Appendix B and see also Appendix A under the heading INDEBTEDNESS OF THE UNIVERSITY Bonds Issued by the Authority Interest Rate Swap Agreements. With respect to the Authority s Project Revenue Bonds, Senior Series and Project Revenue Bonds, Senior Series , which were issued as so-called Build America Bonds under the American Recovery and Reinvestment Act of 2009, outstanding as of January 15, 2015 in the aggregate principal amount of $702,175,000 and amortizing in accordance with the terms thereof, interest includes the cash subsidy payments expected to be received from the United States Department of the Treasury. Excludes debt service payable after the date of issuance of the Bonds on the Refunded Bonds issued under the Project Trust Agreement. (2) Includes anticipated debt service on the Bonds, expected to be issued on March 25,

16 THE PROJECTS The Series Bonds are being issued to finance projects in the University s capital plan that meet certain conditions set forth in the Series Resolution (collectively, the Series Projects ), including without limitation all or a portion of the costs of the projects listed below: On the Amherst Campus: Construction of the McGuirk training facility and pressbox; Maintenance and improvements to the DuBois library; Construction of a campus electrical substation and related electrical improvements, Infrastructure improvements for the central campus; Construction of the Champions Center; Improvements to the Integrated Design Building; Improvements to the South College Academic Building; Expansion and renovation of the Isenberg School of Management, Maintenance and improvements to Whitmore, Marston and Thompson buildings; Replacement of oil filled transformers; Improvements to the Fine Arts Center; Improvements to the Lincoln Campus Center Concourse; Renovations to the backfill of the Life Science Laboratories; Renovations to Marks Meadow portion of Furcolo Hall; Restoration of and improvements to Old Chapel; Expansion of and improvements to central chilled water plants; and Fit out of the Office of Information Technologies data center and Life Science Laboratories. On the Boston Campus: Improvements to the Healy Building; Improvements to the Service and Supply Building; General improvements and projects (other than deferred maintenance); Construction of the Utility Corridor and Roadway Relocation (UCRR); Construction of General Academic Building No. 1; Renovations of and improvements to existing academic buildings; and Construction of new pool facility. On the Lowell Campus: Construction of The Pulichino Tong Building; Acquisition and construction of new residence hall; and Renovations to McGauvran Hall for dining repurpose. See Appendix A under the heading CURRENT AND FUTURE CAPITAL PLANS for additional information about the Series Projects and the University s capital plan. Under the Series Resolution, the Authority may substitute other projects in the University s capital plan that have been requested by the University to be initiated by the Authority and that have been approved by the Secretary of the Executive Office for Administration and Finance of the Commonwealth. PLAN OF REFUNDING A portion of the proceeds of the Series Bonds will be used to refund the Refunded Bonds listed in Appendix H. Such proceeds will be deposited into accounts of refunding trust funds held by U.S. Bank National Association, as trustee for the Refunded Bonds, in amounts which will be invested in direct obligations of, or obligations the payment of the principal and interest on which are unconditionally guaranteed by, the United States of America (the Defeasance Obligations ). According to the report described under the heading VERIFICATION OF MATHEMATICAL COMPUTATIONS, the Defeasance Obligations will mature at such times and earn 10

17 interest in such amounts that, together with any initial cash deposits, will produce sufficient moneys to provide for the payment of the redemption prices, plus accrued interest on the Refunded Bonds to the redemption date, as set forth in Appendix H. APPLICATION OF PROCEEDS OF THE BONDS Costs of the Series Projects, including repayment of commercial paper notes $332,575, Refunding of the Refunded Bonds 224,683, Costs of issuance 3,025, Total $560,283, LITIGATION There is no litigation of any nature now pending or, to the knowledge of the Authority, threatened seeking to restrain or enjoin or restraining or enjoining the issuance, sale, execution or delivery of the Bonds or in any way contesting the validity of the Bonds or any proceedings of the Authority taken with respect to the issuance or sale thereof, the validity of the Contract, or any proceedings of the Authority or of the Commonwealth taken with respect thereto, or of the pledge of any moneys or security provided under the Project Trust Agreement for the payment of the Bonds or the existence or powers of the Authority or the titles of its officers to their offices. See Appendix A under the caption Litigation for information about the University. LEGALITY FOR INVESTMENT As declared by the Enabling Act, the Bonds are securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, all savings banks, insurance companies, trust companies in their commercial departments and, within the limits set by Section 40 of Chapter 172 of the General Laws of the Commonwealth, banking associations, investment companies, executors, trustees and other fiduciaries, and all other persons whatsoever who are now or may hereto be authorized to invest in bonds or other obligations of a similar nature, may properly and legally invest funds, including capital, in their control or belonging to them. The Bonds are securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the Commonwealth for any purpose for which the deposit of bonds or other obligations of the Commonwealth is now or may hereto be authorized by law. TAX MATTERS Bond Counsel is of the opinion that, under existing law, interest on the Bonds, including any accrued original issue discount, as discussed below, will not be included in the gross income of the holders of the Bonds for federal income tax purposes. This opinion is expressly conditioned upon compliance with certain requirements of the Internal Revenue Code of 1986, as amended (the Code ), which requirements must be satisfied subsequent to the date of issuance of the Bonds in order to ensure that interest on the Bonds is and continues to be excludable from the gross income of the holders thereof. Failure to so comply could cause the interest on the Bonds to be included in the gross income of the holders thereof, retroactive to the date of issuance of the Bonds. In particular, and without limitation, those requirements include restrictions on the use, expenditure and investment of proceeds and payment of rebate, or penalties in lieu of rebate, to the United States, subject to certain exceptions. The Authority has provided covenants and certificates as to continued compliance with such requirements. A portion of the Series Bonds will be used to refinance certain projects of the University used by Worcester City Campus Corporation ( WCCC ), a corporation which has received a determination from the Internal Revenue Service that it is exempt from federal income taxation pursuant to Section 501(c)(3) of the Code. Such portion of the Series Bonds will be treated as qualified 501(c)(3) bonds under the Code and the maintenance 11

18 of exempt status of the WCCC requires compliance with general rules governing the organization and operation of taxexempt entities, including its operation for charitable or educational purposes, and its avoidance of transactions that may cause its earnings or assets to inure to the benefit of private individuals. Failure of WCCC to comply with the Internal Revenue Service s requirements for the maintenance of its status as an organization described in Section 501(c)(3) of the Code, or to operate its facilities refinanced by a portion of the Series Bonds in a manner that is substantially related to their charitable or educational purpose under Section 513(a) of the Code, may result in interest payable with respect to such qualified 501(c)(3) Bonds being included in federal gross income, possibly from the date of the original issue of the Bonds. To maintain continued compliance, the Authority will obtain from the WCCC covenants and certificates with the requirements for maintaining its exempt status. In addition, Bond Counsel has relied, among other things, representations of WCCC concerning its exempt status and unrelated trade or business activities as defined in Section 513(a) of the Code. In the opinion of Bond Counsel, under existing law, interest on the Bonds will not constitute a preference item under section 57(a)(5) of the Code for purposes of computation of the alternative minimum tax imposed on certain individuals and corporations under section 55 of the Code. However, interest on the Bonds will be included in adjusted current earnings of corporate holders of the Bonds and therefore will be taken into account under section 56(g) of the Code in the computation of the alternative minimum tax applicable to certain corporations. Interest on the Bonds includes any accrued original issue discount. Original issue discount with respect to a Bond is equal to the excess, if any, of the stated redemption price at maturity of a Bond over the initial offering price at which price a substantial amount of all Bonds with the same maturity were sold (other than to underwriters and other intermediaries). Original issue discount accrues actuarially over the term of a Bond and results in a corresponding increase in the holder s tax basis in such Bond. Holders should consult their own tax advisors with respect to the computation of original issue discount during the period in which any such Bond is held. An amount equal to the excess, if any, of the purchase price of a Bond over the principal amount payable at maturity generally constitutes amortizable bond premium. The required amortization of such premium during the term of a Bond will result in reduction of the holder s tax basis in such Bond. Such amortization also will result in reduction of the amount of the stated interest on the Bond taken into account as interest for tax purposes. Holders of Bonds purchased at a premium should consult their own tax advisors with respect to the determination and treatment of such premium. Bond Counsel has not opined as to other federal tax consequences of holding the Bonds. However, prospective purchasers should be aware that (i) section 265 of the Code denies a deduction for interest on indebtedness incurred or continued to purchase or carry the Bonds or, in the case of a financial institution, that portion of the holder s interest expense allocated to such Bonds, (ii) with respect to insurance companies subject to the tax imposed by section 831 of the Code, section 832(b)(5)(B)(1) reduces the deduction for losses incurred by 15% of the sum of certain items, including interest on the Bonds, (iii) interest on the Bonds earned by certain foreign corporations doing business in the United States could be subject to a foreign branch profits tax imposed by section 884 of the Code, (iv) passive investment income, including interest on the Bonds, may be subject to federal income taxation under section 1375 of the Code for an S Corporation that has Subchapter C earnings and profits at the close of the taxable year if greater than 25% of the gross receipts of such S Corporation is passive investment income, (v) section 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take into account in determining gross income receipts or accruals of interest on the Bonds and (vi) receipt of investment income, including interest on the Bonds, may, pursuant to section 32(i) of the Code, disqualify the recipient from obtaining the earned income credit otherwise provided by section 32(a) of the Code. Bond Counsel has not undertaken to advise in the future whether any events after the date of issuance of the Bonds, including legislation, court decisions, or administrative actions, whether at the federal or state level, may affect the tax exempt status of interest on the Bonds or the tax consequences of ownership of the Bonds. No assurance can be given that future legislation, if enacted into law, will not contain provisions which could directly or indirectly reduce the benefit of the exclusion of the interest on the Bonds from gross income for federal income tax purposes or any state tax benefit. Deficit reduction measures, including the limitation of federal tax expenditures, will be under ongoing consideration by the United States Congress, as will tax reform proposals. These efforts to date have included proposals to reduce the benefit of the interest exclusion from income for certain holders of tax-exempt bonds, including bonds issued prior to the proposed effective date of the applicable legislation. Future proposed changes could 12

19 affect the market value or marketability of the Bonds, and, if enacted into law, could also affect the tax treatment of all or a portion of the interest on the Bonds for some or all holders. Holders should consult their own tax advisors with respect to any of the foregoing tax consequences. Holders should consult their own tax advisors with respect to any of the foregoing. Interest paid on tax-exempt obligations such as the Bonds is now generally required to be reported by payors to the Internal Revenue Service ( IRS ) and to recipients in the same manner as interest on taxable obligations. In addition, such interest may be subject to backup withholding if the Bond owner fails to provide the information required on IRS Form W-9, Request for Taxpayer Identification Number and Certification, or the IRS has specifically identified the Bond owner as being subject to backup withholding because of prior underreporting. Neither the information reporting requirement nor the backup withholding requirement affects the excludability of interest on the Bonds from gross income for federal tax purposes. In the opinion of Bond Counsel, interest on the Bonds and any profit made on the sale thereof are exempt from Massachusetts personal income taxes and the Bonds are exempt from Massachusetts personal property taxes. Bond Counsel has not opined as to the other Massachusetts tax consequences resulting from holding the Bonds. However, prospective purchasers should be aware that the Bonds are included in the measure of Massachusetts estate and inheritance taxes, and the Bonds and the interest thereon are included in the measure of Massachusetts corporate excise and franchise taxes. Bond Counsel has not opined as to the taxability of the Bonds, their transfer and the income therefrom, including any profit made on the sale thereof, under the laws of states other than the Commonwealth. On the date of delivery of the Bonds, the original purchasers of the Bonds will be furnished with an opinion of Bond Counsel substantially in the form shown in Proposed Form of Opinions of Bond Counsel attached hereto as Appendix E. RATINGS The Bonds have been rated AA, Aa2 and AA-, respectively, by Fitch Ratings, Inc., Moody s Investors Service and Standard & Poor s Credit Rating Services, a division of the McGraw-Hill Companies, Inc. Such ratings reflect only the respective views of such organizations, and an explanation of the significance of such ratings may be obtained from the rating agency furnishing the same. There is no assurance that a rating will continue for any given period of time or that a rating will not be revised or withdrawn entirely by any or all of such rating agencies, if in its or their judgment, circumstances so warrant. Any downward revision or withdrawal of a rating could have an adverse effect on the market prices of the Bonds. LEGAL MATTERS All legal matters related to the authorization and issuance of the Bonds are subject to the approval of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., Boston, Massachusetts, Bond Counsel for the Authority. The approving opinion of Bond Counsel, substantially in the form attached hereto as Appendix E, will be delivered on the date of delivery of the Bonds. Certain matters will be passed upon for the Authority and the University by its Disclosure Counsel, Nixon Peabody LLP, Boston, Massachusetts and for the Underwriters by their counsel, McCarter & English, LLP, Boston, Massachusetts. DISCLOSURE CERTIFICATES At the time of delivery of the Bonds, the Executive Director of the Authority will furnish a certificate to the effect that, to the best of her knowledge and belief, the Preliminary Official Statement as of its date and as of the date of the Official Statement and the Official Statement as of its date and as of the date of delivery of the Bonds did not contain any untrue statement of a material fact and do not omit to state a material fact necessary to make the statements made therein, in the light of the circumstances under which they are made, not misleading. To the extent that such certificate covers information regarding the University, the Executive Director of the Authority will rely solely upon the certificates of the University discussed in the following paragraph. 13

20 At the time of delivery of the Bonds, the President and Senior Vice President for Administration and Finance & Treasurer of the University will deliver a certificate to the effect that, to the best of their knowledge and belief, the information set forth in the Preliminary Official Statement relating to the University, as of the date of the Preliminary Official Statement and as of the date of the Official Statement, and the information set forth in the Official Statement relating to the University, as of the date of the Official Statement and the date of delivery of the Bonds did not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading. UNDERWRITING The Bonds are being purchased for reoffering by the Underwriters pursuant to a purchase contract (the Purchase Contract ) between the Authority and Citigroup Global Markets Inc. and Raymond James & Associates, Inc., acting jointly as representative of the Underwriters. The Underwriters have agreed to purchase the Bonds at an aggregate discount of $2,411, from the public offering prices set forth on the inside cover page hereof. The Underwriters may offer and sell the Bonds to certain dealers (including dealers depositing Bonds into investment trusts, certain of which may be sponsored or managed by the Underwriters) and others at prices lower than the public offering prices stated on the inside cover page hereof. The Purchase Contract provides that the Underwriters will purchase all the Bonds if any are purchased. The Underwriters may allow concessions from the public offering price to certain dealers, banks and others. After the initial public offering at the offering price or prices set forth on the inside cover of this Official Statement, the public offering price or prices may be changed from time to time by the Underwriters. The Underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, principal investment, hedging, financing and brokerage services. The Underwriters and their respective affiliates have, from time to time, performed, and may in the future perform, various investment banking services for the Authority or the University, for which they received or will receive customary fees and expenses. In the ordinary course of their various business activities, the Underwriters and affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities, which may include credit default swaps) and financial instruments (including bank loans) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and instruments. Such investment and securities activities may involve securities and instruments of the Authority or the University. The Underwriters and their respective affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities and instruments. In addition, certain of the Underwriters have entered into distribution agreements with other broker-dealers (that have not been designated by the Authority as Underwriters) for the distribution of the Bonds at the original issue prices. Such agreements generally provide that the relevant Underwriter will share a portion of its underwriting compensation or selling concession with such broker-dealers. Citigroup Global Markets Inc. has entered into a retail distribution agreement with each of TMC Bonds L.L.C. ( TMC ) and UBS Financial Services Inc. ( UBSFS ). Under these distribution agreements, Citigroup Global Markets Inc. may distribute municipal securities to retail investors through the financial advisor network of UBSFS and the electronic primary offering platform of TMC. As part of this arrangement, Citigroup Global Markets Inc. may compensate TMC (and TMC may compensate its electronic platform member firms) and UBSFS for their selling efforts with respect to the Bonds. J.P. Morgan Securities LLC ( JPMS ) has entered into retail agreements to expand our access to retail customers on behalf of our issuer clients. Specifically, JPMS has entered into negotiated dealer agreements (each, a Dealer Agreement") with each of Charles Schwab & Co., Inc. ("CS&Co.") and LPL Financial LLP ( LPL ) for the retail distribution of certain municipal securities offerings to the retail customers of CS&Co. and LPL at the original issue prices. Subject to your consent, and assuming suitability for retail investors, JPMS would invite CS&Co. and 14